CompuCom Announces Record 2nd Quarter Earnings and Revenues.DALLAS--(BUSINESS WIRE)--July 16, 1996--CompuCom Systems Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CMPC CMPC Classified Matter Protection and Control CMPC Compañia Manufacturera de Papeles y Cartones S.A. CMPC Cisco Multi-Path Channel CMPC Children's Media Policy Coalition CMPC Central Milk Producers Cooperative CMPC Connecticut Minority Purchasing Council ) a PC services integration company, Tuesday Tuesday: see week. announced after tax earnings from operations for the quarter ended June June: see month. 30, 1996 increased 47 percent to $7.1 million. In addition, the company announced a non-recurring gain related to the sale of securities during the second quarter of $5.2 million, boosting net earnings to $12.3 million. Comparable 1995 second quarter after tax operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before were $4.8 million. Revenues for the quarter increased 45 percent to $509 million from $351 million posted for the same period in 1995. Second quarter fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , excluding the non-recurring gain, increased to $.14 per share compared to $.11 per share in 1995. Including the non-recurring after tax gain, fully diluted earnings per share were $.25 for the quarter ended June 30, 1996. Net earnings, excluding the non-recurring gain, for the first six months of 1996 increased 49 percent to $12.9 million, up from $8.6 million a year ago. Net earnings, including the non-recurring gain, were $18.1 million. For the same period, revenues increased 37 percent to $922 million, up from $674 million in 1995. Fully diluted earnings per share, excluding the non-recurring gain, increased to $.26 per share on a year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. basis, compared to $.19 per share in 1995. Including the non-recurring gain, fully diluted earnings per share were $.36 for the six months ended June 30, 1996. During the second quarter of 1996, CompuCom participated in the secondary stock offering of PC Service Source Inc. resulting in an after tax non-recurring gain on the sale of securities of $5.2 million. CompuCom founded PC Service Source Inc. in 1990 and now owns less than 5 percent of PCSS PCSS Pennsylvania Council for the Social Studies PCSS Photoconductive Semiconductor Switch PCSS Porter Creek Secondary School PCSS Process Control Simulation System PCSS Process Control Safety System PCSS Platform Check Sub-System . "We continue to experience strong product demand due, in part, to the advancements we have made in making it easier for our customers to do business with CompuCom. In addition to ease of use, the efficiencies associated with these tools such as customer procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. systems, data warehouse queries and web-based order statusing, reduce the customers' overall procurement cost," said Edward Edward killed his father at his mother’s instigation. [Br. Balladry: Edward in Benét, 302] See : Patricide R. Anderson Anderson, river, Canada Anderson, river, c.465 mi (750 km) long, rising in several lakes in N central Northwest Territories, Canada. It meanders north and west before receiving the Carnwath River and flowing north to Liverpool Bay, an arm of the Arctic , president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "In fact, our data warehouse and order statusing tools were just awarded a "Best Practices Award" as innovative client server applications from the Data Warehousing See data warehouse. data warehousing - data warehouse Institute, an industry trade group. "The combination of strong product demand and the 54 percent increase in our service business allowed us to post strong second quarter revenues and earnings from operations," concluded Anderson. CompuCom Systems Inc., headquartered in Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. is a leading provider of PC products and network integration services for large corporate customers nationwide. CompuCom's services include: LAN/Wan projects, help desk design and implementation, network management, field engineering, asset and web-based procurement management, configuration and product distribution. -0-
COMPUCOM SYSTEMS INC.
COMPARATIVE FINANCIAL DATA
(all amounts in thousands except per share amounts)
Three Months Ended June 30 Six Months Ended June 30
1996 1995 1996 1995
Revenues
Product $ 467,817 $ 324,427 $ 845,800 $ 626,828
Service 38,760 25,204 71,697 44,872
Other 2,178 1,079 4,592 2,497
------- ------- ------- -------
Net Revenues 508,755 350,710 922,089 674,197
Gross Margin(b)
Product $ 47,073 $ 33,789 $ 85,242 $ 65,540
Service 11,630 8,240 23,867 13,811
Other 588 524 1,433 1,380
------- ------- ------- -------
Gross Margin 59,291 42,553 110,542 80,731
After tax $ 7,092 $ 4,814 $ 12,854 $ 8,649 earnings from operations Non-recurring $ 5,242 $ 5,242 gain(a)(net of income taxes Net Earnings $ 12,334 $ 4,814 $ 18,096 $ 8,649 Earnings per common share (excluding non-recurring gain): -Primary $.14 $.12 $.26 $.22 -Fully diluted $.14 $.11 $.26 $.19 Earnings per common share: -Primary $.25 $.12 $.37 $.22 -Fully Diluted $.25 $.11 $.36 $.19 Average common shares outstanding: -Primary 47,497 36,261 47,250 35,992 -Fully Diluted 50,099 44,996 50,061 44,935 (a) During the second quarter of 1996, CompuCom participated in the secondary stock offering of PC Service Source Inc. resulting in an after tax non-recurring gain on the sale of securities of $5.2 million. (b) CompuCom has reclassified certain service-related expenses from operating expense to cost of sales for all periods presented. The effect of this reclassification resulted in a decrease in operating expense and a corresponding increase in cost of sales of $12.9 million and $24.4 million from the previously reported three months and six months ended June 30, 1995, respectively. Earnings per common share calculations are based on the weighted average number of shares outstanding in each period. Therefore, the sum of the quarters does not necessarily equal the year to date earnings per common share.
COMPUCOM SYSTEMS INC
SUMMARY BALANCE SHEET
June 30, 1996
(all amounts in thousands)
6/30/96 12/31/95
--------- ----------
Accounts Receivable $ 327,746 $ 265,071 Inventory 212,066 196,531
Other Current Assets 6,640 6,400
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Total Current Assets 546,452 468,002
Other Assets 41,514 40,702
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Total Assets $ 587,966 $ 508,704
========= ========
Current Liabilities $ 251,464 $ 243,047 Long-Term Debt 172,578 120,364 Deferred Income Taxes 3,955 3,952 Convertible Subordinated Debt 3,000 3,000
Stockholders' Equity 156,969 138,341
-------- --------
Total Liabilities and $ 587,966 $ 508,704
Stockholders' Equity ========= =========
CONTACT: CompuCom Systems Inc. Edward R. Anderson/Robert J. Boutin Boutin is a surname, and may refer to:
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